STATE POLICIES

UTTRANCHAL INDUSTRIAL POLICY- 2001

THE VISION

To create an environment conducive to the rapid and ecologically sustainable industrial development of the State of Uttranchal with a view to:-

1. Harnessing industrial resources of the State and putting them to productive use.

2. Enhancing the flow of investments into industry and infrastructure.

3. Generating additional employment opportunities.

4. Raising the per capita income levels and standards of living of the people.

5. Ensuring equitable industrial development of all regions of the State.

6. Putting the State of Uttranchal on a high growth path.

7. Above all, endeavouring to create an industry-friendly environment in the State with the State Government playing the role of a facilitator for industrial development.

PREFACE

The Industrial Policy outlined in this document has been prepared bearing in mind the constraints, strengths and potential for industrial development in the State of Uttaranchal. The strategy detailed in the Policy aims at ensuring rapid, balanced and sustainable industrial development of Uttaranchal. Special emphasis has been paid to the revival and growth of traditional industries with a view to ensuring the economic development of the remote and hill areas of the State. Development of infrastructure, enhanced private sector participation, human resource development, expansion of marketing facilities and above all protection of the environment have been identified as areas of focus. Importantly, this first ever policy for industrial development of this area, is the outcome of a consultative process involving industry associations, concerned government departments and organizations and public representatives. Above all, this policy endeavours to establish an industry friendly environment in the State with the State government playing the role of a facilitator in industrial development.

Uttaranchal, the 27^th State of India, came into being on 9^th November, 2000. The main objective for the creation of this new State was to ensure rapid economic development of this area. Various factors have contributed to the economic backwardness of Uttaranchal, one of the foremost being slow industrial growth. The reasons for this include hilly and difficult terrain; gaps in infrastructure; lack of connectivity; problems of raw materials availability; limited access to markets and, most importantly, the absence of a specific policy for industrial development in the area keeping in view its special conditions. It is in this context that an Industrial policy for the State of Uttaranchal is being formulated.

1. Resin and Turpentine

2. Paper

3. Pencil

4. Matchwood

5. Plywood

6. Sports Goods, Toys, Drawing instruments

7. Herbs and medicinal plants

STRENGTHS:

Uttaranchal is blessed with a relatively clean and non-polluted atmosphere. It also enjoys a rare diversity of flora and fauna. Two thirds of the land mass is under forest cover. Several rare species of aromatic and medicinal plants are found in this State. Besides, the State has rich mineral deposits. Uttaranchal is also a tourism paradise and it's proximity to the National Capital gives it an added advantage from this point of view. With a literacy level of 72% Uttaranchal is well above the national average of 65%. Hence, the potential for human resource development is substantial. Several national level technical and educational institutions, like the Pantnagar Agriculture University and the University of Roorkee, are located within the State. The State has excellent potential for hydro-power generation. Above all, a peaceful environment exists in the State making it conducive for industrial development. Indeed, the State of Uttaranchal has pre-requisites for rapid industrial development and growth.

STRATEGY :

Keeping in mind the above-mentioned strengths and weaknesses, the following strategy has been drawn up for industrial development in the State of Uttaranchal :

DEVELOPMENT OF INFRASTRUCTURE FACILITIES :

The most important pre-requisite for rapid industrial development and growth is the creation of state-of-the-art infrastructure.

Identification of Thrust Areas:

Industrial thrust areas for Uttaranchal can be categorized into traditional and other industries.

Traditional Industries :

The State Government will endeavour to develop traditional industries through the cluster approach with private sector participation. Common facilities for quality improvement, technology and design upgradation, market promotion and skill enhancement will be provided at these clusters. Assistance to these clusters will be provided through establishing suitable linkages with on going Central and State sponsored schemes/ programmes.

A Master Plan for the revival and development of traditional industries, particularly in the hill areas of the State would be prepared. This Master Plan will place special emphasis on establishing the backward and forward linkages for the growth of these traditional industries i.e. availability of raw materials, training of artisans, identification of new markets etc.

• Handicrafts : There are several handicraft industries in Uttaranchal which have been languishing, for instance carpet weaving, wood carving, brassware and copper based industries. For revival of these industries Government will play the role of a facilitator in ensuring adequate backward and forward linkages. Training by Master Craftsmen will be organised in situ and these locations will be developed as "Shilp Grams". For the marketing of handicraft products, action will be taken to develop outlets in Tourist Centres, and provide increased access to markets outside the State. In addition, assistance will be sought under the Government of India's "Baba Saheb Ambedkar Hastshilp Vikas Yojana" which aims at developing the Handicrafts sector through an integrated cluster approach and by making the artisans self-sustainable.

• Handlooms : This industry is of vital importance for employment generation in rural areas. Under the Deen Dayal Hathkargha Protsahan Yojna action will be taken to benefit Cooperative Societies or registered groups. Members of these groups would be imparted training as well as be provided with modern looms and designs. Action will be taken for facilitating the marketing of their products. Establishment, expansion and modernization of Design Centres will also be undertaken. Further, State Government also proposes to develop Integrated Handloom Complexes where facilities for dyeing, carding, development of designs, etc. will be provided.

• Wool Based Industry : A large section of the population is involved in sheep breeding and production of wool. However, Wool Industry has not been developed in an integrated manner. It is proposed to pay special emphasis on improving availability of good quality raw material, wool processing, grading, quality and design improvement, strengthening of marketing arrangements and mobilise institutional finance for development of this industry. Non-traditional animal wool fibres will also be encouraged and developed. Efforts will similarly be made to develop vegetative fibres. A Wool Bank and Wool auction yards will also be established.

• Khadi and Village Industries : Special emphasis will be paid to the development of Khadi and Village industries, cottage industries and tiny industries. Common facility centers for packaging and marketing will be developed. Following the efforts of the State Government, the Government of India has declared "Gharats" as a cottage industry. These "Gharats" will serve as a nucleus for the development of tiny industries in the rural areas.

• Wax Based Industry : This is an important handicraft industry in the hill regions of the State. The main problem facing this industry is lack of availability of good quality raw material. Institutional arrangements will be made to overcome the same. Also, proper arrangements for marketing of finished products will be accorded due priority.

OTHER INDUSTRIES :

• Biotechnology : After Information Technology, biotechnology is the emerging thrust area at the global level. Uttaranchal is well known for its vast and rich diversity of flora and fauna. Two third of the land mass is under forest cover. Rare species of plants and animals are also found in the State. In this context, a MOU has already been signed between Rabo India Finance Company, Infrastructure Development Finance Company and the G.B.Pant University of Agriculture and Technology in order to forge strategic cooperation to jointly pursue initiatives in the sphere of research in food and agriculture sectors. Efforts will also be made to establish an Institute of Bio-Technology.
  
  

• Agro Based and Food Processing Industry : Uttaranchal produces large varieties of cereals, fruits, vegetables and spices. Large quantities of such produce is wasted because of lack of storage and processing facilities. Also, the packaging industry leaves a lot to be desired. In order to develop and strengthen this sector, backward and forward linkages will be established in cooperation with the private sector and coordination with all concerned departments and agencies of the State and Central Government.

• Floriculture: Uttaranchal has a rare diversity of flowers and excellent climatic conditions conducive to commercial floriculture. Some of the popular varieties are Rose, Lilium, Calla-lily, Fresia and Gladulai. It is proposed to establish a Floriculture Park with common infrastructure facilities for sorting, grading, pre-cooling, cold store, processing, packing and marketing facilities. In this connection, efforts will be made to enlist the cooperation of institutions like the Agricultural & Processed Food Products Export Development Authority (APEDA), National Horticulture Board (NHB), Ministry of Food Processing Industries, etc.

• Industry based on Herbal and Medicinal Plants : Uttaranchal is a storehouse of a rich variety of species of herbs, medicinal and aromatic plants. This massive potential has remained largely unexploited in the absence of a well planned and coordinated strategy for commercial cultivation and integrated arrangements for processing and marketing. An integrated action plan will be drawn up for this purpose in coordination with the Government of India and specialized agencies all over the country. Strategic linkages and connectivity will also be forged between this industry and tourism. Special emphasis will be given to arrangements for marketing both within the country and abroad.

• Tea Industry : Recently, intensive efforts have been commenced in the State to significantly expand the plantation of tea with the involvement of a large number of small and marginal farmers and landless labour. Already 560 acres of new plantations have been covered and it is proposed to bring an additional 22000 acres of land under tea plantation over the next few years. Action will be taken to encourage the setting up of tea processing and packaging units and thus establish Uttaranchal as a major tea producer in the country.

• Forest-based Industry : With the vast forest coverage in Uttaranchal, there is excellent potential for the development of forest resources based industry in the State, while taking due care to maintain the ecological balance and compliance with laws relating to forest conservation and environmental protection. Some such industries could include paper and paper products, plywood/flush boards, furniture, wood carvings, sports goods, toys, educational aids (in particulars pencils), matchsticks, katha, bamboo-based products, etc.

  In addition, there is ample scope to develop industries based on forest and agro-wastes such as lantana, pine-needles and vegetative fibres such as Rambans, etc. Action will be taken in an integrated manner and in cooperation with specialised agencies, for research and development, product development and promotion of industries based on such materials.
  
  

• Information Technology : Forest-based Industry :With its clean environment, proximity to the national capital, high literacy rate, concentration of high quality educational institutions, particularly in Dehradun, Nainital, Roorkee and Udhamsingh Nagar (Pantnagar), and the presence of a large number of national institutions, Uttaranchal has the potential to develop as a major Information Technology Centre in the country. In view of this and the large area of hilly terrain and dispersed habitations, Information Technology has been identified as a major thrust area of development in the State.

  The IT strategy will be centred around four major areas of setting up IT backbone/ infrastructure, IT education and IT in education, IT in Governance, Tourism, Commerce and business, and IT industry by way of hardware and software development. In all these areas there will be ample opportunities for private sector participation and investment, and the Government will make special efforts to encourage and promote the same.

  It is estimated that IT enabled services alone could generate employment opportunities for one lakh persons up to 2010. Similarly, it has been estimated that there is a software exports and domestic market potential up to Rs. 20,000 crores during the same period. There would thus be space for major players in the IT industry as well as for large scale local wage and self employment and income generation.

  The Government will take planned initiatives to promote the development of IT in all the areas mentioned above with the cooperation of industry associations and specialized organizations like NASSCOM, who are also developing an IT Vision for Uttaranchal. A joint Task Force for IT development has also been set up with the Confederation of Indian Industry (CII).

  Action will be taken to setting up Software Technology Parks (STPs) at different locations in the State and work to setup a STP/ ITP(Information Technology Park) in Dehradun has commenced. A MOU has been signed with Software Technology Parks of India (STPI), under which work on setting up an Earth Station is nearing completion.

  Action will also be taken to setup an Indian Institute of Information Technology (IIIT) in Uttaranchal, so far as possible, in tandem with the establishment of STP/ITP.

• Recreation and Entertainment Industry :

  Uttaranchal provides tremendous opportunities for development of the recreation and entertainment industry in tandem with tourism. There are innumerable spots of natural and scenic beauty in the State. Action will be taken to establish Amusement Parks, Jungle Safaris, Botanical Parks, Nature Parks etc. with private sector participation and investment.

  Uttaranchal provides excellent locations for shooting of films. Action will be taken, in close cooperation with film industry, to develop a 'Film City', in order to provide the basic infrastructure and facilities for printing, dubbing and editing of films along with all other technical equipment.

Private Sector Participation and Investment :

One of the key elements for industrial development is the infusion of investments and state-of-the-art technology into industry. Action will be taken to attract private sector investments into industry with Government playing the role of a facilitator. Procedures for industrial approvals will be simplified and single window system will be created so that private sector participation is unhindered by cumbersome rules and regulations. In order to attract foreign investments, Investment and Technology Marts (Intechmarts) will be organized wherein specific industrial projects will be posed for foreign investment and technology transfer. Special efforts will be made to promote investments from Non-Resident Indians (NRIs). Co-operation would be sought from the Apex industry associations, private sector industrial houses and UN organizations like, UNDP, UNIDO,etc. to facilitate this process.


HUMAN RESOURCE DEVELOPMENT :

Special emphasis will be paid to the development of entrepreneurship in the State with a focus on developing entrepreneurship among women, scheduled castes and tribes, unemployed youth and other weaker sections of the society. Linkages will be established with reputed national institutions such as the Indian Institutes of Management, Entrepreneurship Development Institute, etc. with a view to improve management skills of persons employed in both traditional and other industries.


Marketing facilities :

There is an urgent need to augment marketing facilities available in the State. Special emphasis will be placed on the organization of Trade Fairs, Buyers-Seller Meets, Investment & Technology Marts etc. An Uttaranchal Haat will also be established. Action will be taken to promote the brand image of products of Uttaranchal. A State Pavilion will be established at the Indian Trade Promotion Organisation, Pragati Maidan, New Delhi. A web site displaying updated information on industrial products of Uttaranchal and other industries related information will be launched. Display/sale centers for industrial products, particularly handicrafts, will be developed.


PROTECTION OF ENVIRONMENT :

Protection of environment and the maintenance of the ecological balance will be accorded top most priority. Industrial units will be encouraged to establish effluent treatment plants, develop sites for solid waste disposal, establish clean production centers. The violation of environmental safeguards will be severely penalized.

INSTITUTIONAL ARRANGEMENTS :

• Udyog Mitra :

  The thrust of the Government is to create a friendly environment for the growth and development of industry in the State. With this objective, the Government will establish an Udyog Mitra at the State level. This will be chaired by the Chief Minister with the Industry Minister and all other concerned ministers as its members. The Chief Secretary and Secretaries of all other concerned departments will be members of the Udyog Mitra, together with representatives of industrial associations. The Udyog Mitra will serve as a consultative mechanism between the Government and industries and its objective would be to create an industry friendly environment in the State and to continuously review and taken decisions in respect of action and policy requirements. The Udyog Mitra will also look into issues relating to sick industries and their rehabilitation.

  At the district level, Udyog Mitra will function under the chairmanship of the District Magistrate for effective field level integration, review and monitoring in respect of all matters related to industry.

  Industrial Development Board (IDB):

  An Industrial Development Board, headed by the Chief Secretary of the State, will be setup. It will review and take policy initiatives and provide a single window forum for clearances in respect of major projects. It will monitor the implementation of policy and projects. It will include representatives from the Civil Aviation, Environment and Forest , Finance, Home, Information Technology, Labour, Power, Public Works and Transport Departments.

  OTHER MEASURES:

  • A Council comprising eminent representatives of different industrial sectors at the national level and major industry associations will be established to advise the Government on matters pertaining to policy and action requirements for promoting and developing different types of industry in the State.

  • The status and problems of different industries operating in the State will be studied and reviewed to enable identification of measures and action requirements.

  • Particular emphasis will be given to rehabilitation of sick industries.

  • The State Government will also encourage the establishment of Technology Institutes/ Institutions by large industrial houses in high tech areas such as information technology, bio technology, electronics, etc.

  • The service sector will be given due encouragement as part of industrial activities. Educated unemployed youth will be encouraged to set up Self Help Groups in activities like technical consultancy, tourism, IT related activities, construction etc with possible assistance from the Government.

  
  

  INCENTIVES :

  POWER:

  The provision of good quality, uninterrupted power to industrial units is one of the most crucial factors for ensuring rapid industrial growth. In this context, the following decisions have been taken :-

  • In order to give a boost to the agro based and food processing industries, a special tarrif (lower than the normal industrial tariff) shall be introduced.

  • As soon as the State Government gets its allocation from the Central Pool of Power, the peak hour restrictions on Small and Medium Industries (defined on the basis of power load upto 100 HP), are intended to be waived off.

  • With the operationalisation of the Tehri Dam Project, waiver of peak hour restriction for all industries, including heavy industries , is proposed.

  • Feeders with 75% or more of Industrial load will be provided uninterrupted power supply with immediate effect.

  • The time frame and methodology for load sanction of 11 KVA, 33KV/66KV and 132 KV would be as follows :-

Load sanction of 11 KVA Line

Sanction of load within 30 days.

Issue of demand notes and sanction another 30 days.

Release of connection from the date of completion of demand note = 60 days.

33 KV/66 KV Line

Sanction and Load and issue of demand note 60 days.

Issue of feasibility report = 45 days.

Release of connection after the compliance of demand note = 90 days.

132 KV and above

This sanction will be accorded in consultation with the Department of Industry at the Government level.



FISCAL :



• Central Sales Tax (C.S.T.) for small and medium industries on a selective basis will be reduced from 4 % to 1%.

• Subsidy on the rate of interest on loans taken by SSI units from financial institutions would be given to the tune of 2% subject to a ceiling of Rs. 2.00 lakhs per unit.

• Under the Transport Subsidy Scheme of Government of India, 50 % of transport cost on the basis of rates decided by the State Government or actual freight paid, which ever is less, will be provided as subsidy up to 5 years from the date of production.

• Assistance by way of equity/financial participation in infrastructure projects will be considered and provided on a case by case basis.




OTHER MEASURES :

• Without compromising on quality, purchase preference will be given in Government purchases for items manufactured by SSI units of the State.

• State Government will act as a facilitator for the identification, transfer, acquisition / sale and other matters relating to land for the development of industries in the State. For this purpose a special cell will be created in the Directorate of Industry and the offices of the District Industries Centres.

• Encouragement will be given for quality assurance and industrial units obtaining quality certification from approved institutions/ research laboratories will be provided assistance to the tune of 50% of the expenditure up to a maximum of Rs.1.00 lakh.

• The units getting ISO-9000 certification will be given subsidy upto Rs.75,000 per unit during the period of 10^th Five Year Plan.

• Industrial units, who register their Patents will be provided assistance to the tune of 75 % of the expenses incurred up to a maximum of Rs. 2.00 lakhs.

• The State Government will initiate a process to rationalise and simplify the labour laws and procedures.

• Concrete steps would be taken to rationalize the prevailing system of inspections in order to prevent harassment.



The State Government will make efforts with the Government of India to obtain a Special Package for Industrial Development on the lines of some, Special category States, which may interalia include Income Tax holidays, rebate in Central Excise and Capital Investment subsidy, etc.

The above strategy it is hoped will ensure the rapid, balanced and sustainable industrial development of the State of Uttaranchal.

IMPORTANT CONTACT POINTS FOR INDUSTRIES RELATED INFORMATION

Office of Industries Minister
Vidhan Bhawan, Haridwar Road, Dehradun
Phone : 91-0135-677499 Fax : 91-0135-677222

Chief Secretary
Government of Uttaranchal, Dehradun
Phone : 91-0135-712100 Fax : 91-0135-712500

Secretary & Director Industries,
Government of Uttaranchal, Dehradun

Phone : 91-0135-712095 Fax : 91-0135-712112
Email : nareshnp@sancharnet.in

Directorate of Industries,
Government of Uttaranchal, Dehradun
Telefax : 91-0135-742903

District Industries Centre, Dehradun
Telefax : 91-0135-724903

District Industries Centre, Kotdwar (Pauri)
Telefax : 91-01382-22266

District Industries Centre, Gopeshwar (Chamoli)
Telefax : 91-01372-52126

District Industries Centre, Narendra Nagar (Tehri)
Telefax : 91-01378-27297

District Industries Centre, Uttarkashi
Telefax : 91-01374-22744

District Industries Centre, Roorkee (Haridwar)
Telefax : 91-01332-62452

District Industries Centre, Udhamsingh Nagar
Telefax : 91-05944-43204

District Industries Centre, Haldwani (Nainital)
Telefax : 91-059-20669

District Industries Centre, Almora
Telefax : 91-05962-30177

District Industries Centre, Pithoragarh
Telefax : 91-05964-22574

Kumaon Garhwal Chamber of Commerce & Industry, Kashipur (Udhamsingh Nagar)
Phone : 91-05947-75178 Fax : 91-05947-79078

Indian Industries Association, Uttaranchal, Dehradun
Phone : 91-0135-640530 Fax : 91-0135-642640

Uttaranchal Industries Association, Dehradun
Phone : 91-0135-725287, 726850, 652624 Fax : 91-0135-721308